MERCOSUR, or what should be MERCOSUR, does not exist. Argentina's protectionist measures are exactly the opposite of what should be happening within a regional alliance. Argentina's President Cristina Fernández, constantly talks about increases of regional trade when facts show that exactly the opposite is happening.

The government of Argentina increases restrictions to imports on a daily basis in a desperate attempt to avoid bankruptcy. At one point, the difference between the official parity exchange rate and the market exchange rate (Argentina's peso - USA Dollar) was 80%.

In other words, the currency of Argentina is overvalued by 80% and this brings memories of other times when the government of Argentina pegged Argentina's peso to the USA Dollar, something that could only be maintained by selling gold reserves, something that led to Argentina's default of its foreign debt.

Argentina is still dealing with more than a hundred international creditors and facing legal challenges because of the default of its foreign debt. There is an abyss between what President Fernández says and what is really happning both nationally and regionally.